FPCCI slams ‘biased’ fund disbursement

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Saturday expressed concern over the “biased and unfair” manner in which commercial banks have disbursed 90 per cent of the funds coming under export refinance schemes to only a few chosen business groups.

In a statement, FPCCI President Mian Nasser Hyatt Magoo said that if this unfair and biased practice continued, small and medium enterprises (SMEs) would not be able to remain in business and survive in these times of depressive pandemic-induced economic slowdown.

The same practice is there when it came to export refinance for solar plants and equipment.

“Economic logic warrants more support to SMEs and new businesses rather than well-established business groups. This is even more critical with clean energy sources like solar which Pakistan desperately needs more businesses to chip in,” Mr Magoo said.

The FPCCI president urged the federal government and State Bank of Pakistan (SBP) to accommodate and encourage SMEs in export refinance schemes. Additionally, SBP should instruct commercial banks to provide funds to diversified sectors under the schemes; instead of a few selected sectors.

“Pakistan needs broadening of the base in its exports and the government and SBP have a role to play. SBP must regulate the commercial banks effectively to eradicate favoritism and unfair practices,” the statement added.